The World's Most Powerful Brand; Hint: It's Not Apple

If we asked you to name the world’s most powerful brands, you may likely mention some of the companies lined up in Silicon Valley and answered with big names like Google or Microsoft. But would you have guessed that this year’s most powerful brand is Lego?

Top business valuation and strategy consultancy Brand Finance has released its annual Global 500 list, a report on the world’s most valuable brands. The report reveals that last year’s chart-topper, Ferrari, has dropped to 4^th place and  Lego has taken its spot.

The Danish toy company owes most of its success to The Lego Movie franchise that helped it score higher in terms of loyalty, familiarity, and promotion. The fact that the design is unique, creative, and strengthens children’s imagination makes its reputation stronger. Lego is also a brand that parents approve of, as it makes them feel a sense of nostalgia. All brands were measured by their Brand Strength Index (BSI), which accounts for marketing and brand management efforts.

The world’s most powerful brands and their BSI scores:

1. Lego (92.7)
2. Google (92.1)
3. Nike (92.1)
4. Ferrari (91.9)
5. Visa (91.5)
6. Disney (91.3)
7. NBC (91.3)
8. PwC (90.9)
9. Johnson&Johnson (90.1)
10. McKinsey&Company (89.8)

Meanwhile, the battle for the most valuable brand had two top contenders gunning for first place. Ultimately, Google overtook Apple, which held the title of most valuable brand for the last five years. A brand’s value was determined by its performance in brand strength index, brand royalty rate, and brand revenues. The report explains that Apple has failed to generate significant revenues from its latest products. Its rivals, such as Samsung, which took 6^th place, and Huawei, were said to have leveled the playing field among top tech brands.

Google, which is monopolizing the search engine race has benefited from Apple’s downfall. While cost-per-click in ads have faltered, ad revenues have gone up by 20 percent since many businesses allocated bigger chunks of their budgets to online ads. Google has also been a stable contender in mobile advertising.

The world’s most valuable brands and their 2017 brand values:

1. Google ($109.4bn, up by 24%)
2. Apple ($107.1bn, down by -27%)
3. Amazon ($106.4bn, up by 53%)
4. AT&T ($87bn, up by 45%)
5. Microsoft ($76.2bn, down by 13%)
6. Samsung ($66.2bn, up by 13%)
7. Verizon ($65.9bn, down by 4%)
8. Walmart ($62.4bn, up by 16%)
9. Facebook ($62bn, up by 82%)
10. ICBC ($478bn, up by 32%)

h/t Brand Finance